Morocco Faces $2.3 Billion in Potential Sanctions Over Foreign Investment Disputes

For the past ten years, the poor governance of successive Moroccan governments has led Morocco to a dozen disputes with foreign investors, five of which are subject to arbitration by the International Center for Settlement of Investment Disputes (ICSID). The kingdom risks financial sanctions of around 23 billion dirhams, reports Maroc Hebdo.

The American giant Carlyle is claiming 3.9 billion dirhams as part of a dispute with Morocco that has been going on for four years. The case is subject to arbitration by the ICSID of the World Bank. The American company accuses Morocco of having "ceded", "seized" and "collected" its crude oil and refined petroleum products stored in the tanks of the oil refining company SAMIR, placed in judicial liquidation in March 2016. According to Carlyle, Morocco has not respected its obligations "under the free trade agreement concluded between Morocco and the United States in 2006".

Another request against Morocco was filed with the institution on June 27 last, by the Spanish company Comercializadora Mediterranéa de Viviendas (renamed Marina d’or-Loger). In 2004, the company participated in the construction of two large real estate complexes in Morocco, including the new city of Tamesna, and was to recover its investment through the sale of the built real estate complexes. But "the inaction of the Moroccan government to provide equipment and infrastructure" has "led to this idyllic new city being currently reduced to a few isolated buildings," denounced the law firm B. Cremades & Asociados, which represents the Spanish company.

The Spanish company had also concluded a contract with the Moroccan government for the construction of the real estate complex La Perle de Tanger in the city of the same name. But administrative difficulties have hampered the proper execution of the project. The Spanish company is claiming the sum of 407 million euros (more than 4 billion dirhams) in damages for the damages suffered.